Key Takeaways

• India’s solar industry is rapidly expanding, aiming to become the second-largest globally by the mid-2030s.
• Major challenges include rising U.S. tariffs on Indian solar exports and a heavy dependence on Chinese imports for key components.
• Investment and local manufacturing initiatives are being ramped up to secure India’s position in the global solar market.

Emerging Opportunities in India’s Solar Industry

At Borosil Renewables Ltd.’s manufacturing site in Bharuch, India, the production of specialized glass for solar panels reaches an intense 63C (145F). This facility produces 1,000 tons of molten glass daily, with staff dedicated to ensuring product quality. Company executive chairman Pradeep Kumar Kheruka emphasizes that in their specialized field, “there’s absolutely no room for error.” Since 2010, Borosil’s output has surged more than five-fold, driven by India’s burgeoning push for renewable energy.

With India’s economy booming and electricity consumption rising sharply, the local solar sector is expected to grow rapidly. According to BloombergNEF, India’s solar market could surpass all but China’s by the mid-2030s. This burgeoning growth represents a significant market opportunity for many companies, including major players like Reliance Industries, Tata Power, and specialized producers such as Waaree Energies and Premier Energies.

Vinay Rustagi, chief business officer at Premier Energies, acknowledges the opportunity for India, noting that many countries are looking to reduce imports from China. However, India faces two major hurdles: increasing manufacturing capabilities while minimizing reliance on Chinese imports, and navigating ongoing U.S.-India trade tensions. Analysts warn that rising U.S. tariffs on India’s solar exports—expected to hit 64%—could limit access to this crucial market.

A recent analysis shows that Chinese imports dominate India’s solar supply chain. Four of the top solar panel producers in India heavily rely on Chinese components, leaving them vulnerable to trade disruptions. Reliance alone invested around $300 million in equipment from a single Chinese supplier, Suzhou Maxwell Technologies.

Efforts are underway to bolster local supply chains. For instance, Waaree CEO Amit Paithankar stated that while they depend on global suppliers, strengthening domestic capabilities is also a priority. ReNew Energy has paused investments in wafer manufacturing, citing insufficient local machinery availability as a challenge.

The growth of India’s solar industry is projected to contribute significantly to job creation. The International Renewable Energy Agency estimates that the sector already employs over 300,000 people. Initiatives from the Indian government aim to reach 500 gigawatts of clean energy capacity by 2030, nearly double the current total. Recent policy changes, including import duties on solar components and mandated use of government-approved suppliers, signal a commitment to advancing domestic manufacturing.

Module production in India has grown substantially over recent years, but China-made modules remain cheaper, despite a 40% import tax. However, the costs of Indian-produced equipment are declining as the industry scales. U.S. demand remains high, with 97% of Indian solar module exports heading to the U.S. market, yet the potential for increased tariffs presents a fresh challenge.

In response to geopolitical dynamics, the Indian government is optimistic about building a self-reliant solar sector. Finance Minister Nirmala Sitharaman has outlined a broader manufacturing mission, which includes solar projects as a priority.

While India’s ambitions are hindered by external pressures from locations like China, there’s growing enthusiasm from investors in the nation’s green energy potential. Solar projects attracted a record $14.2 billion in investments in 2024, indicating robust market interest.

At Borosil’s plant, Kheruka confirms plans to increase capacity while advocating for more government support to strengthen local supply chains. The assertion remains that becoming self-sufficient in solar production is an attainable goal for India, effectively positioning the nation within the global solar landscape.

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